THE ROLE OF WORD OF MOUTH (WOM) IN MEDIATING THE RELATIONSHIP BETWEEN PRICE AND PURCHASE DECISIONS
Keywords:
Word of Mouth (WOM), Price, Purchase DecisionAbstract
This study aims to examine the role of price in influencing purchase decisions with word of mouth (WOM) as a mediator. The sample of this study was 100 respondents. Data were collected by distributing questionnaires using purposive sampling to everyone who had made a purchase at Alfamidi, Ternate City, North Maluku at least 3 times in the past month. The collected data were then analyzed using the Partial Least Square-Structural Equation Modeling (PLS-SEM) technique with the help of the SmartPLS 3 application. Price has a positive and significant effect on purchasing decisions, and word of mouth is the result of the analysis of this study. Word of mouth has a positive and significant effect on purchasing decisions. Word of mouth is able to significantly mediate the effect of price on purchase decisions.
Downloads
References
Aaker, D.A. (1970). Using buyer behavior models to improve marketing decisions. Journal of Marketing, 34(3), 52–57.
Andersch, H., Arnold, C., Seemann, A.K., & Lindenmeier. (2019). Understanding ethical purchasing behavior: Validation of an enhanced stage model of ethical behavior. Journal of Retailing and Consumer Services, 48, 50–59.
Anderson, J.C., Thomson, J.B.L., & Wynstra, F. (2000). Combining value and price to make purchase decisions in business markets. International Journal of Research in Marketing, 17(4), 307–329.
Astuti, R., Silalahi, R.L.R., & Wijaya, G.D.P. (2015). Marketing strategy based on marketing mix influence on purchasing decisions of Malang apples consumers at Giant Olympic Garden Mall (MOG), Malang City, East Java Province, Indonesia. Procedia of Agriculture and Agricultural Science, 3, 67–71.
Basri, N.A.H., Ahmad, R., Anuar, F.I., & Ismail, K.A. (2016). Effect of word of mouth communication on consumer purchase decision: Malay Upscale Restaurant. Procedia of Social and Behavioral Sciences, 222, 324–331.
Djatmiko, T., & Pradana, R. (2016). Brand image and product price; Its impact for Samsung Smartphone purchasing decision. Procedia of Social and Behavioral Sciences, 219, 221–227.
Dzian, M., Triznova, M., Kaputa, V., & Supin, M. (2015). The analysis of WOM in Slovak Republic and impact of WOM on consumers' purchasing decision. Procedia of Economics and Finance, 26, 975–981.
East, R., Hammond, K., & Lomax, W. (2008). Measuring the impact of positive and negative word of mouth on brand purchase probability. International Journal of Research in Marketing, 25(3), 215–224.
Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139-151.
Hair, J.F., Sarstedt, M., Pieper, T.M., & Tingle, C.M. (2012). The use of partial least squares structural equation modeling in strategic management research: A review of past practices and recommendations for future applications. Long Range Planning, 45, 320–340.
Hanaysha, J.R. (2018). An examination of the factors affecting consumer’s purchase decision in the Malaysian Retail Market. PSU Research Review, 2(1), 7–23.
Jun, S.P., & Park, D.H. (2016). Consumer information search behavior and purchasing decisions: empirical evidence from Korea. Technological Forecasting and Social Change, 107, 97–111.
Karjaluoto, H., Munnukka, F., & Kiuru, K. (2016). Brand love and positive word of mouth: The moderating effects of experience and price. Journal of Product and Brand Management, 25(6), 527–537.
Kinney, M.K., Ridgway, N.M., & Monroe, K.B. (2012). The role of price in the behavior and purchase decisions of compulsive buyers. Journal of Retailing, 88(1), 63–71.
Konuk, F.A. (2019). The influence of perceived food quality, price fairness, perceived value and satisfaction on customers’ revisit and word-of-mouth intentions towards organic food restaurants. Journal of Retailing and Consumer Services, 50, 103–110.
Lim, B.C., & Chung, C.M.Y. (2011). The impact of word-of-mouth communication on attribute evaluation. Journal of Business Research, 64(1), 18–23.
Liu, C.H.S., & Lee, T. (2016). Service quality and price perception of service: Influence on word-of-mouth and revisit intention. Journal of Air Transport Management, 52, 42–54.
Malhotra, N.K. (2017). Marketing Research: An Applied Orientation, Prentice Hall., New Jersey, USA.
Martin, W.C., & Lueg, J.E. (2013). Modeling word-of-mouth usage. Journal of Business Research, 66(7), 801–808.
Martin, S.S., Prodanova, J., & Jimenez, N. (2015). The impact of age in the generation of satisfaction and WOM in mobile shopping. Journal of Retailing and Consumer Services, 23, 1–8.
Matzler, K., Teichmann, K., Strobl, A., & Partel, M. (2019). The effect of price on word of mouth: First time versus heavy repeat visitors. Tourism Management, 70, 453–459.
Maxham, J.G. (2001). Service Recovery’s influence on consumer satisfaction, positive word-of-mouth, and purchase intentions. Journal Business Research, 54(1), 11–24.
Sachse, S.B., & Mangold, S. (2011). Brand equity dilution through negative online word-of-mouth communication. Journal of Retailing and Consumer Services, 18(1), 30–45.
Santos, C.P.D., & Basso, K. (2015). Price unfairness: The indirect effect on switching and negative word-of-mouth. Journal of Product and Brand Management, 21(7), 547–557.
Stankevich, A. (2017). Explaining the Consumer decision-making process: Critical literature review. Journal of International Business Research and Marketing, 2(6), 7–14.
Tang, X., & Song, Z. (2019). Neurological effects of product price and evaluation on online purchases based on event-related potentials. Neuroscience Letters, 704, 176–180.
Tejavibulya, P., & Eiamkanchanali, S. (2011). The impacts of opinion leaders towards purchase decision engineering under different types of product involvement. Procedia of Systems Engineering, 2, 12–22.
Ting, H., Thaichon, P., Chuah, F., & Tan, S.R. (2019). Consumer behaviour and disposition decisions: The why and how of smartphone disposition. Journal of Retailing and Consumer Services, 51, 212–220.
Wu, K., Vassileva, J., Noorian, Z., & Zhao, Y. (2015). How do you feel when you see a list of prices? The interplay among price dispersion, perceived risk and initial trust in Chinese C2C market. Journal of Retailing and Consumer Services, 25, 36–46.
Zinoubi, Z.G., & Toukabri, M. (2019). The antecedents of the consumer purchase intention: Sensitivity to price and involvement in organic product: Moderating role of product regional identity. Trends in Food Science and Technology, 90, 175–179.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Dudi Amarullah, Adysabzan T. Krois
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
